Retailers hold the key: improving data strategies to get the most out of commerce?media in 2024

Retail media has exploded onto the digital advertising scene, becoming one of the most dynamic emerging channels for brands. As major retailers build out their own ad platforms, they can offer brands unparalleled targeting thanks to troves of shopper data. However, for retail media to achieve its immense potential, critical limitations around data must be resolved.

In a recent article, 贝恩公司 explored how retail media has enjoyed rapid growth as retailers capitalize on profitable "side hustle." But the landscape is shifting. As advertisers consolidate spending towards top retail media networks, they are becoming much more demanding about performance and attribution. Inconsistencies in data transparency, standardization, and usage must be tackled for retail media to realize its full potential.

Right now, many retail media networks are falling short when it comes to providing the transparent, granular, real-time data that brands need to properly optimize and measure campaigns. There is also a troubling lack of standardization in metrics, reporting, attribution models, and other fundamentals across different networks. This makes it incredibly difficult for advertisers to allocate budgets efficiently and demonstrate true return on ad spend.

Overcoming these limitations requires both technology investments by retailers as well as much closer collaboration with brands. Advertisers today want hands-on account management, test-and-learn programs, and processes that provide the level of sophistication now expected in digital media. Bullish projections have retail media growing into a $XXX billion channel within a few years. But subpar data strategies could severely hamper this potential.

As spending consolidates towards the top retail media platforms, the competition will be intense. The winners will be those retail media networks that reinvent outdated conventions around data transparency, standardization, and usage.

"As retail media matures, advertisers will increasingly compare outcomes and returns on retail media networks with other digital advertising channels, instead of viewing retail media as a niche solution." (Bain & Company: "No More Easy Money on the Side: Retail Media Enters the Performance Era")

With the right foundation of shared data capabilities, retail media can shift into a core channel for highly targeted and measurable advertising. But retailers must focus on consistency, accuracy and timeliness if they want their ad platforms to stop being just a side hustle and start competing alongside search, social, and other elite digital media offerings.

The future remains extremely bright for retail media - but only with the right data strategies to back it up.